Bitcoin just crossed the heaviest short liquidation cluster of the year. đ¨
There was a short position building up between US$ 82 and US$ 86 for months.
Now those shorts have turned into fuel, because whoever is short there is forced to buy back.
Two days ago I posted that there were 605,900 BTC from long-term holders with an average cost of US$ 84.186 in this exact region, and that it would need real demand to absorb it.
Yesterday the aggregated spot CVD printed +332 million, the biggest of the month, green across all major exchanges.
So both things are happening at the same time. Real spot buying coming in from below and shorts being forced to cover from above.
But itâs worth separating: short liquidation is mechanical flowâit ends when the sold inventory runs out. What sustains price after that is the spot.
The question that matters now is whether the buyer keeps showing up once the shortsâ fuel runs out.
There was a short position building up between US$ 82 and US$ 86 for months.
Now those shorts have turned into fuel, because whoever is short there is forced to buy back.
Two days ago I posted that there were 605,900 BTC from long-term holders with an average cost of US$ 84.186 in this exact region, and that it would need real demand to absorb it.
Yesterday the aggregated spot CVD printed +332 million, the biggest of the month, green across all major exchanges.
So both things are happening at the same time. Real spot buying coming in from below and shorts being forced to cover from above.
But itâs worth separating: short liquidation is mechanical flowâit ends when the sold inventory runs out. What sustains price after that is the spot.
The question that matters now is whether the buyer keeps showing up once the shortsâ fuel runs out.
